Fix and Flip Insurance Minnesota

Last updated: June 12, 2025

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"The first rule in investment is don't lose and the second rule in investment is don't forget the first rule." - Warren Buffett

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Fix and flip insurance—sometimes called renovation insurance or builder’s risk insurance—is a specialized policy crafted for Minnesota real estate investors who buy, renovate, and resell properties for profit. Unlike ordinary homeowners insurance, this coverage addresses the unique risks found in Minnesota’s fix and flip and BRRRR projects, from properties sitting vacant in Minneapolis to active renovations in Rochester or Duluth.

In a state where winter freeze-thaw cycles can wreak havoc on empty houses and local building codes evolve fast, fix and flip insurance protects your investment dollars, shields you from liability, and helps you stay on schedule—even when the unexpected Minnesota weather threatens to delay your project.

Whether you’re an investor new to the Land of 10,000 Lakes or a seasoned flipper working across Twin Cities neighborhoods, fix and flip insurance is essential for safeguarding your capital, minimizing liability exposure, and keeping your timeline on track in any season.

Minnesota’s real estate market has seen a sharp rise in fix and flip insurance premiums—rates are up more than 25% over the past 18 months. For investors from St. Paul to St. Cloud, this has a direct impact on your project’s profitability and your ability to compete.

Through our extensive work in private lending and insurance rate shopping throughout Minnesota, we’ve reviewed hundreds of fix and flip insurance policies each year. Our analysis shows that the average policy is quoted nearly 33% higher than necessary for most Minnesota projects—often because investors are steered toward insurance agencies unfamiliar with the unique risks and guidelines of renovation investing in our state.

Too often, Minnesota investors end up overpaying for fix and flip insurance. Many agencies are incentivized by premium volume or are captive to just one carrier, leading to less competitive rates—especially for vacant and under-renovation properties, which carry different risks in a state like Minnesota.

This is exactly why we built the OfferMarket Insurance rate shopping platform. In less than a minute, Minnesota investors can compare coverage from over 40 leading carriers, ensuring you get the best policy at the lowest possible rate. Every quote is reviewed by our local experts, who specialize in saving money for 1-4 unit residential investors throughout Minnesota. Every month, we save our clients thousands—and we’re excited to show you how much you could keep in your next Minnesota project!

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Fix and Flip Insurance Markets

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Wherever your next project is in Minnesota, we have you covered: You can also check out:

• Fix and Flip Insurance Alabama
• Fix and Flip Insurance Alaska
• Fix and Flip Insurance Arizona
• Fix and Flip Insurance Arkansas
• Fix and Flip Insurance California
• Fix and Flip Insurance Colorado
• Fix and Flip Insurance Connecticut
• Fix and Flip Insurance Delaware
• Fix and Flip Insurance Florida
• Fix and Flip Insurance Georgia
• Fix and Flip Insurance Hawaii
• Fix and Flip Insurance Idaho
• Fix and Flip Insurance Illinois
• Fix and Flip Insurance Indiana
• Fix and Flip Insurance Iowa
• Fix and Flip Insurance Kansas
• Fix and Flip Insurance Kentucky
• Fix and Flip Insurance Louisiana
• Fix and Flip Insurance Maine
• Fix and Flip Insurance Maryland
• Fix and Flip Insurance Massachusetts
• Fix and Flip Insurance Michigan
• Fix and Flip Insurance Minnesota
• Fix and Flip Insurance Mississippi
• Fix and Flip Insurance Missouri
• Fix and Flip Insurance Montana
• Fix and Flip Insurance Nebraska
• Fix and Flip Insurance Nevada
• Fix and Flip Insurance New Hampshire
• Fix and Flip Insurance New Jersey
• Fix and Flip Insurance New Mexico
• Fix and Flip Insurance New York
• Fix and Flip Insurance North Carolina
• Fix and Flip Insurance North Dakota
• Fix and Flip Insurance Ohio
• Fix and Flip Insurance Oklahoma
• Fix and Flip Insurance Oregon
• Fix and Flip Insurance Pennsylvania
• Fix and Flip Insurance Rhode Island
• Fix and Flip Insurance South Carolina
• Fix and Flip Insurance South Dakota
• Fix and Flip Insurance Tennessee
• Fix and Flip Insurance Texas
• Fix and Flip Insurance Utah
• Fix and Flip Insurance Vermont
• Fix and Flip Insurance Virginia
• Fix and Flip Insurance Washington State
• Fix and Flip Insurance Washington State
• Fix and Flip Insurance West Virginia
• Fix and Flip Insurance Wisconsin
• Fix and Flip Insurance Wyoming

Why You Need Fix and Flip Insurance in Minnesota

1. Vacant Properties Face Unique Minnesota Risks

Most Minnesota fix and flip projects start with a vacant property—often sitting through harsh winters, spring floods, or long renovation timelines. Standard insurance policies don’t cover the extra risks faced by these empty homes: vandalism, theft, or damage from frozen pipes and ice dams.

2. Construction and Renovation Risks in Minnesota

From new roofs in Minneapolis to kitchen overhauls in suburban Maple Grove, every rehab brings risk:

• Structural damage during snowmelt
• Contractor injuries from icy conditions
• Fire hazards in older homes
• Theft of renovation materials during long winter nights

Fix and flip insurance for Minnesota is custom-built for these scenarios, ensuring your project is covered at every stage.

3. Liability Protection

If a contractor, neighbor, or trespasser is injured onsite—whether it’s a slip on an icy walkway in Edina or a fall during demo day in Eagan—fix and flip insurance with general liability coverage helps shield you from lawsuits and medical costs.

What Does Fix and Flip Insurance Cover in Minnesota?

Fix and flip insurance policies are highly customizable for Minnesota investors. Here’s what’s typically included or available as optional coverage:

Property Coverage

Protects your property and materials from:

• Fire
• Vandalism
• Theft
• Lightning
• Wind and hail—especially important in Minnesota’s storm seasons
• Water damage (non-flood)

General Liability

Covers claims for bodily injury or property damage from third parties, including:

• Slip and fall accidents on ice
• Contractor injuries
• Damage to neighboring homes or properties

Builder’s Risk

Often bundled with property coverage, builder’s risk covers the structure during renovations, plus materials in transit or storage, and new features being installed.

Vacant Property Endorsement

Ensures your policy remains valid, even if your Minnesota property sits empty for months of the year during the rehab.

Tools and Equipment

Optional coverage for your tools or rented machinery—whether lost, stolen, or damaged on site.

Ordinance or Law Coverage

Covers added expenses if your property needs to be brought up to code after a covered loss. This is especially valuable in cities like Minneapolis and St. Paul, where building codes are strictly enforced.

Loss of Rents

Sometimes bundled in, this “business interruption” coverage protects against lost rental income if you keep tenants during the rehab or plan to rent after the flip—relevant for BRRRR projects and Minnesota’s growing multi-unit market.

What is NOT Covered by Fix and Flip Insurance in Minnesota?

Even the best fix and flip insurance policy for Minnesota properties has limits. Common exclusions include:

• Wear and tear or shoddy workmanship

• Flood damage (Minnesota’s spring thaws and river flooding require a separate flood insurance policy)

• Earthquake damage (uncommon in Minnesota, but often excluded or needs a separate rider)

• Intentional damage or fraud

• Acts of war or government seizure

Always review your exclusions carefully with a Minnesota-licensed insurance agent to make sure you’re never caught off guard.

Who Needs Fix and Flip Insurance in Minnesota?

Fix and flip insurance is an essential risk management tool for:

• Individual real estate investors working on properties in Minneapolis, St. Paul, Rochester, or beyond

• Professional house flippers across the Twin Cities and outstate regions

• Real estate LLCs, partnerships, and syndicates investing in Minnesota

• Wholesalers who briefly take title before resale (double close)

• Private lenders looking to protect their collateral in Minnesota markets

From a $120,000 Saint Paul duplex to a $1,000,000 luxury property on Lake Minnetonka, fix and flip insurance is vital for any Minnesota project.

How Much Does Fix and Flip Insurance Cost in Minnesota?

Insurance premiums vary depending on location, property value, renovation budget, project length, coverage limits, and deductibles. Here’s what Minnesota investors typically see:

Note:

• Minnesota annual insurance premiums are generally refunded pro rata if you cancel early—most often after a sale or a refinance (such as a DSCR loan).

• Bundling multiple Minnesota properties under one “portfolio policy” can lower your cost per property.

Best Fix and Flip Insurance Minnesota

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Minnesota investors have options when shopping for fix and flip insurance. Your decision comes down to the risks you’ll accept, your price comfort zone, how aggressively you rate shop, and the value you get from your agent or client service team. We recommend a comprehensive fix and flip insurance policy in Minnesota that includes property insurance, general liability, business interruption, and—if needed—flood insurance.

Working with a Minnesota insurance agency that specializes in fix and flip coverage, and shops multiple carriers, will always deliver the best coverage at the best price.
Get your fix and flip insurance Minnesota quote today!

How to Get Fix and Flip Insurance in Minnesota with OfferMarket

OfferMarket makes the insurance process seamless for Minnesota investors, connecting you to underwriters who truly understand real estate investing in the North Star State.

The OfferMarket Advantage for Minnesota Investors

• Fast quotes—typically within 24 hours

• Custom policies for anywhere from 1 to 100+ Minnesota properties

• Support for title-holding entities: personal name, LLC, C-Corp, S-Corp, Revocable Trust, Land Trust, LP

• Experience with local lender guidelines and Minnesota’s unique risk landscape

• Competitive pricing from top-rated carriers

• Easy certificate of insurance (COI) generation—essential for proof at closing

• Secure digital record keeping in your OfferMarket Insurance File

Insurance Requirements for Fix and Flip Loans in Minnesota

Most Minnesota lenders will require:

• Property coverage at least equal to the loan amount

• General liability (typically $1M per occurrence)

• Named insured and loss payee clauses

• Proof of insurance before closing

• Ongoing coverage throughout the loan term

Failure to keep adequate coverage can lead to:

• Loan default

• Forced-placed insurance (much higher cost)

• Personal liability for damages

OfferMarket coordinates directly with Minnesota lenders—streamlining the process from underwriting to post-closing. If you’re also using OfferMarket Capital for your DSCR or fix and flip loan, the process is even smoother.

Structuring Coverage for a Multi-Property Portfolio in Minnesota

Flipping more than one property in Minnesota? Consider these structures:

• Blanket policies: One policy for all your Minnesota investments

• Scheduled policies: Each property listed separately with unique limits and premiums

• Master policies: Combined coverage (vacant property, builder’s risk, etc.) in a single package

OfferMarket helps Minnesota’s high-volume flippers optimize both costs and administration—making life easier as your portfolio grows.

Fix and Flip Insurance Minnesota Checklist

Use this checklist to ensure your Minnesota investments are fully protected:

✅ Property insurance covers full replacement cost
✅ General liability of at least $1M
✅ Vacant property endorsement included
✅ Builder’s risk covers your renovation phase
✅ Tools/equipment coverage if needed
✅ Policy names your lender as loss payee
✅ Flood/earthquake insurance if required by your lender
✅ Project start/end dates match your timeline
✅ Certificate of insurance issued and stored

Fix and Flip Insurance Guidelines Minnesota

Here are common insurance guidelines for fix and flip loans in Minnesota—reflecting both risk management best practices and local lender requirements.

Property Coverage

General Liability Coverage

Business Interruption Insurance

This is optional but essential if you plan to keep tenants in your Minnesota property while the policy is in effect. Some fix and flip insurance policies will stay active as landlord insurance after rehab.

Flood Insurance

If your Minnesota property is in a FEMA-designated special flood hazard area, your lender may require flood insurance.

Additional Details for Minnesota Investors

If you have a lender involved in your Minnesota project, you’ll need to include their mortgagee clause.

Why Choose OfferMarket for Fix and Flip Insurance Minnesota?

OfferMarket is the trusted insurance partner for real estate investors and private lenders throughout Minnesota, from the Twin Cities to Greater Minnesota towns. Our platform simplifies every step of acquiring, financing, and insuring your next investment property—removing obstacles so you can focus on the deal.

What Sets OfferMarket Apart in Minnesota?

Real-time deal and insurance management platform built for Minnesota investors

• A dedicated support team that understands local market risks
• Integrated solutions for insurance, lending, and exclusive off-market properties
• We shop insurance carriers for you—no wasted hours, no missed opportunities
• Smart matching with Minnesota-friendly insurance carriers
• Your entire insurance process—quoting, binding, certificates—is handled in one place

Frequently Asked Questions – Fix and Flip Insurance Minnesota

Do I need insurance before closing on a Minnesota flip?

Yes. Whether you’re financing with a lender or paying cash, proof of insurance is required before you close. OfferMarket can typically issue a certificate of insurance for your Minnesota property within hours.

Can I get insurance if my Minnesota property is already under renovation?

Yes, but you must disclose any ongoing renovation work. Some carriers may request an inspection or limit certain coverages for projects already underway.

What if I sell my Minnesota flip early?

You can cancel the policy and receive a pro-rated refund for the unused portion of your premium.

Can I cover multiple Minnesota flips under one insurance policy?

Absolutely. OfferMarket offers portfolio policies that can save you time and money as you build your Minnesota property portfolio.

What if I’m renting out a unit before the flip?

Depending on your carrier, fix and flip insurance may not cover active tenants. In that case, you’ll need a landlord or hybrid policy that fits your unique situation.

How does OfferMarket Insurance work for Minnesota?

OfferMarket is a rate shopping platform that specializes in insurance for Minnesota real estate investors. We search dozens of carriers, review your preferences and lender requirements, and help you secure the most competitive fix and flip policy available.

Can I use my own Minnesota insurance agent for my fix and flip loan?

You can, provided your agent can meet Minnesota’s fix and flip insurance requirements and lender guidelines. However, working with an agent not specialized in commercial or renovation risks can cause delays and higher costs—especially for Minnesota’s unique property risks. Most clients prefer OfferMarket’s streamlined process and cost savings.

Can I pay for my fix and flip insurance at closing?

Minnesota fix and flip loan guidelines require that your insurance premium is paid in full at or before closing, either through the settlement statement (HUD-1/ALTA) or directly with your agent. A paid receipt is required for verification if you pay directly.

Do I need to escrow my fix and flip insurance premium in Minnesota?

Most Minnesota lenders do not require insurance escrow. You are typically responsible for ensuring your policy remains paid and in effect, even if your project runs longer than planned. You’ll receive a refund for any unused premium if you cancel early.

What is an AM Best Rating?

AM Best is an independent agency that evaluates the financial stability of insurance companies. For Minnesota investors, choosing insurers with a strong AM Best Rating ensures peace of mind.

What is builder’s risk insurance?

Builder’s risk insurance protects your Minnesota property and on-site construction materials during the renovation, rehab, or construction phase. Coverage typically includes fire, lightning, windstorm, hail, falling debris, vandalism, and theft—crucial protections during a Minnesota winter or summer storm.

Your builder’s risk policy ends when:

• The property is sold or transferred

• 90 days have passed since construction completion

• The property is occupied or put to use

• Your interest in the property ends

• The project is abandoned

Most builder’s risk policies use a Completed Value Form, matching your dwelling coverage to your ARV or replacement cost.

Protect and Grow Your Portfolio with OfferMarket Minnesota

Fix and flip insurance isn’t optional in Minnesota—it’s the foundation of a smart investment strategy. With narrow margins, unpredictable weather, and local compliance requirements, savvy investors understand that downside protection is as important as upside gains. Whether you’re flipping a single Minneapolis home or managing a statewide portfolio, OfferMarket’s insurance solutions scale with your ambitions.

OfferMarket is dedicated to serving Minnesota’s real estate investors—especially those focused on 1-4 unit residential properties. Our mission is to help you build lasting wealth through real estate in the North Star State.

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